The big push I have been hearing and reading is don't retire and collect Social Security until you are 70 and you will make an additional 45% a month. Looking at their figures of estimated payments bear that statement out. On paper. However, what does that mean in the real world?
Waiting until age 70
x 96 (months age 62-70) -1,184 Difference a month
140,736/2650 = 53.11 months to recoup already collected benefits
x 149.11 (96+53.11) x 53.11
At age 74.4 (62+12.4) a net gain of 77,853.76
At age 74.4………77,853.76/1,184 = 65.8 months/12 = 5.48 years to break even.
62 + 8(to age 70) + 4.4 (years to recoup collected) 5.48(to break even) = 79.8 years old = 17.8 years of retirement already enjoyed.
Again, lets make it simple.
These would be the total numbers at age 79.8 if starting at 62
x 213.6 (months age 62-79.8) x 117.6 (months age 70-79.8)
Total payments at age 79.8 = +1497.76 if started at age 62
I know, I know people will say what if you live to 90? You will lose money! You will ultimately be in the hole. I've thought about that and have some figures for you. Again, these are based on my personal age and the following chart comes directly from the Social Security office for my birth date:
Notice Social Security claims the older I get the longer I will live. How much of that is to convince people not to retire and enjoy the golden years? But, because I’m not easily convinced I looked further. This site: http://www.worldlifeexpectancy.com/usa/life-expectancy, says in
Using Social Security's longevity numbers, and live only to their numbers, if I start at age 62 I would collect $362,395, at 66 $440,448, and at 70 $469,080. Makes it look like I am getting ready to make a huge mistake.
But from the other site, using a Life Expectancy average of 74 it would be $211,104 from 62, $190,464 from 66, and $127,200 from 70. Damn, maybe, just maybe, I'm not so dumb after all.
Besides those are the numbers. Pure and simple. Or is it? How is it possible that everything I have found and read on the Web and Government sites stop at this point and leave you with this thought....Here it is, make your decision, and hope, or pray, you are right. Why do I get the nagging feeling they are all leaving something out? They are all experts. They are looking out for our best interests. There can't be anything that all of them are missing, or leaving out, because they